Kids Savings Account: Why and how to open it?

 A Bank Account is at the core of all banking activities, no matter how small or significant. Hence, opening a Bank Account is a prerequisite for banking in India. Furthermore, Bank Accounts simplify banking today. You no longer need to visit the bank branch offline to conduct banking. You can do banking from your fingertips by simply linking your Bank Account to online platforms. Therefore, open a Bank Account on priority if not done yet.

There are different types of Bank Accounts, but Savings Accounts are the most common type. The account encourages you to save, earns you a competitive Savings Account interest rate, and facilitates daily banking in a hassle-free manner. Anyone can open a Savings Account. You can open an account for your minor as well. Let us understand why and how to open a Kid’s Savings Account.

Why open a Kid's Savings Account?

The Kid’s Savings Account works like a regular account, but it includes various features and benefits that make it unique. As per the bank's standard policy, you need to maintain a minimum balance and earn a competitive interest rate on deposits. The Kids Savings Account comes with a Debit Card, which your child can use to make a range of offline and online transactions.

The Debit Card has a lower transaction limit, ensuring your child can access the money during emergencies. Another unique feature of the Kids Savings Account is that it has a maximum balance limit. Once the account balance exceeds the maximum limit, the surplus amount is automatically invested as a Fixed Deposit for one year. This lets you reap a better Kids Savings Account interest rate.

The Kids' Savings Account facilitates seamless banking and wealth creation. Your child can benefit from both in the long run. Hence, you should consider opening one for your child.

How to open a Kid’s Savings Account?

The procedure to open a Kid’s Account is simple:

·         You need to decide on the bank you want to open the Kid’s Savings Account. Ideally, open the account with the same bank you hold an account with. It makes account opening and management easier.

 

·         Visit the nearest bank branch or go online to open the account.

 

·         Fill out the account opening form. You need to mention your child as the primary account holder while yourself as the secondary account holder.

 

·         Submit your child’s birth certificate as age proof and other identity and address proofs mentioned in the bank’s document requirement list.

 

·         The bank verifies the form information and the submitted documents.

 

·         Upon completion of all formalities, the account is operational instantly.